US national gasoline price will peak lower, earlier in 2013

12 March 2013 15:31[Source: ICIS news]

HOUSTON (ICIS)--The national average price for a gallon of regular unleaded gasoline is at $3.70/gal, more expensive than one month ago, but 5 cents/gal less than one week ago, automobile organisation AAA said on Tuesday.

The average retail price has now declined for 12 consecutive days, which is the longest streak of falling prices in 2013, according to the AAA’s Fuel Gauge Report.

“It is too soon to say whether retail prices have peaked for the spring, because there is still refinery maintenance to be completed and much of the country must still transition to summer-blend gasoline,” AAA’s Michael Green said.

The organisation maintains its prediction that the national average price for 2013 will reach its high at a lower price point and earlier than in 2012.

The spike in retail prices earlier this year was the result of refinery maintenance and concerns, rather than more expensive crude oil.

“These refinery issues pressured both wholesale and futures prices higher for gasoline, while crude oil prices only increased slightly during the same period,” said Green. “The recent decline in the national average is partially due to cheaper crude oil but is more closely linked to sharply lower wholesale gasoline prices.”